Traders here say that a leading soft drink company is withholding its popular fizzy products from the market in preparation for price increases. There is speculation that prices will rise by 50 percent.
Small traders selling bottles of water and soft drinks in Jeddah are complaining that the company has stopped delivering products from its main factory.
Salesmen at several shops in Jeddah told Arab News that the supply ran dry just before Ramadan.
The products of this company include cans selling for SR1.50 each and a box of 24 cans costing SR36. The small water traders usually sell the soft drink box of 24 plastic bottles for SR20.
Ibrahim Humaidan, a salesman at a small water trader selling soft drinks in Al-Safa district, said that all soft drinks are currently available at the same price, except those from this leading company.
“We are expecting the price of ... to increase because this is what happens when supply is stopped. We don’t care if prices are high, the cost will be borne by the customer,” he said.
“In summer time most families prefer to buy soft drinks. In Ramadan, the demand is low, but if this continues until Eid, I can assure you the demand will be much bigger.”
Humaidan said he could not be sure why supply has been cut, but expects prices to increase.
Mansour Ali, a water and soft drink salesman in Al-Bawadi, said the company stopped delivering its products two weeks ago.
“Some people think that the factory does not have workers to cover its needs in Ramadan, but this is not true. Due to the extension of the amnesty period, factories still have time to let expat workers do their jobs. I think the sudden cut in supply is because of a hidden plan to increase prices,” he said.
Fahim Halawa, an Egyptian worker at a small water factory, said that a few years ago this leading company stopped delivering a certain soft drink. When it started deliveries again, the price had increased by 50 percent.
“I expect prices to go up once the company starts delivering the soft drink bottles again,” he said.
Many economists expect the tax of SR 2,400, required for each expatriate worker exceeding Saudization quotas, to increase prices. Businesses are going to pay more taxes because they are required to register workers under their sponsorship. This is likely to fuel inflation, say economists.
A leading soft drink brand goes off shelves
